Capital Funding Guide

3. Specialist Homes

This chapter sets out the Agency’s requirements and procedures which must be followed by providers when providing accommodation that is classified as specialist housing.

1. Overview

1.1 Purpose

1.1.1 This chapter sets out Homes England’s requirements and procedures which must be followed by providers when providing grant funded Affordable Rent, Social Rent, Shared Ownership (including Older Person’s Shared Ownership - OPSO and Home Ownership for people with long-term disabilities - HOLD) and Rent to Buy accommodation that is classified as specialist housing. 

1.1.2 This chapter does not reflect all elements of general programme requirements and should be read in conjunction with the other chapters of the Capital Funding Guide (CFG) as appropriate.

1.2 Context

1.2.1 Specialist housing is housing that is purpose designed or designated to meet the needs of a particular group and is over and above what may be provided by general housing. This can include housing for older, disabled and vulnerable people, as well as homes intended for Gypsies and Travellers, faith-based communities or culture-sensitive homes. 

1.2.2 Specialist housing includes supported housing where accommodation is provided alongside care, support or supervision (or access to these services where needed) to help people live as independently as possible in the community. Accommodation should be residential first and foremost rather than healthcare provision.

1.2.3 This chapter sets out the requirements relevant to providers delivering specialist and supported homes under the Social and Affordable Homes Programme (SAHP) 2026 to 2036, the Affordable Homes Programme (AHP) 2021 to 2026, the Shared Ownership and Affordable Homes Programme (SOAHP) 2016 to 2021, the Rough Sleeping Accommodation Programme (RSAP) and the Single Homelessness Accommodation Programme (SHAP). These requirements will apply to each specialist housing type unless stated separately.

1.2.4 Bidding for the SOAHP 2016 to 2021, RSAP and SHAP is now closed with the focus of these programmes on delivery. For schemes funded through the SOAHP 2016 to 2021 Continuous Market Engagement (CME) and RSAP routes, final completions are expected to deliver by 31 March 2026; for SHAP by 31 March 2026; and for SOAHP Strategic Partnership schemes by 31 March 2028.

The separate funding programmes listed above will be referred to collectively in the rest of this chapter as Homes England’s ‘affordable homes programmes’, unless elements of the guidance are only relevant to a particular programme or programmes. The requirements set out will apply to each specialist housing type unless stated separately.

2. Specialist Housing Types

2.1 General

2.1.1 Homes England’s affordable homes programmes are intended to meet a diverse range of housing needs. This includes schemes for housing for older people, housing for disabled and vulnerable people as well as homes for Gypsies and Travellers, faith-based communities or culture-sensitive homes.

2.1.2 Details of the specialist housing types supported under the SAHP are provided here. For typologies and requirements for previous affordable housing programmes see sections 2.7 to 2.9 for the AHP 2021 to 2026 and SOAHP 2016 to 2021, section 3 for RSAP and section 4 for SHAP. The specific requirements for homes for Gypsies and Travellers are in section 5.

2.2 Specialist and supported housing for older, disabled and vulnerable people

2.2.1 For the SAHP, specialist and supported housing is categorised into 3 needs groups:

• homes for older people — covering older people with or without support or care needs 
• homes for working age disabled people — people with a physical or mental impairment with substantial or long-term support or  care needs (in line with the Equality Act 2010)
• homes for people with transitional support needs — people who are in crisis or with temporary or intermediate support needs

A list of the disabled and vulnerable client groups which comprise the ‘working age disabled people’ and ‘people with transitional support needs’ categories is in section 2.4.

2.2.2 Properties should be described as housing for older people if they are intended for older people (regardless of the actual characteristics of each tenant) and they fall into one of the relevant housing types here. The age of the tenants that are resident in the properties is not a defining feature, other than for homes delivered under the Older Persons Shared Ownership (OPSO) route which has a minimum age of 55.

2.3 Specialist and supported housing types

2.3.1 Specialist and supported homes provided through the SAHP may be 1 of the following:

a) purpose designed accommodation with on-site support

b) purpose designed accommodation with access to support

c) designated accommodation with on-site support

d) designated accommodation with access to support, relevant to the needs of the individuals or families being homed.

2.3.2 The specialist and supported accommodation types for the SAHP are defined as:

• ‘purpose designed accommodation’, which means the property will be either new build, or a major adaptation of an existing property designed to specifically accommodate the needs of one or more of the target group needs. These properties will include additional bespoke design features and communal spaces and must be designed to meet accessibility standards

• ‘designated accommodation’, which means the property will be designated to accommodate one or more target groups but will not include any specific or additional design features or major adaptations. Typically, these properties will include reprovision or repurposing of an existing property which is updated or adapted to meet the target group needs

2.3.3 The types of support attached to the accommodation are defined as:

• ‘on-site support’, which means support services provided either by the landlord and, or, another organisation contracted by the landlord or the local authority at the property to help residents live as independently as possible.

• ‘Access to support’ means a process is in place to enable residents to access support services provided either by the landlord and, or, another organisation contracted by the landlord or the local authority at the property as needed.

2.3.4 The specialist and supported housing types supported by the SAHP are as:

• extra care or housing with care — purpose-built or adapted self-contained supported homes for older people or working age disabled people in a scheme with on-site care and support services designed for assisted living.  Schemes include extensive communal facilities and space for social activity and support. They may include facilities designed to accommodate a particular group, for example people with dementia. (purpose designed accommodation with on-site support)

• accessible or adapted homes – long-term self-contained homes for older people or working age disabled people, purpose-designed or adapted for accessibility, and with access to support if required. Schemes may include some communal space, but this is not a defining feature. (purpose designed or designated accommodation with access to support)

• retirement living or sheltered housing - self-contained purpose-designed or adapted homes for older people in a scheme with some support services (eg, a scheme manager, emergency alarms), communal facilities and social space. Typically, personal care service is not provided. Schemes may provide a range of dwelling types and facilities and should be accessible and adaptable to enable residents to live as independently as possible. (purpose designed accommodation with access to support)

• designated housing for older people — self-contained homes with no special design features or additional facilities but which provide accommodation designated for older people, with a process to enable residents to access support services provided by the landlord or another organisation where needed. (designated accommodation with access to support)

• purpose designed supported living - long-term supported housing with care and, or, support which is purpose-designed or adapted for working age disabled people with support needs. Schemes can be self-contained or shared housing as part of a scheme or dispersed individual properties. Schemes should typically include communal facilities such as a lounge, training or activity space, and may include a laundry or guest room. (purpose designed accommodation with on-site support)

• designated supported living - long-term supported housing with care and, or, support which is designated for working aged disabled people with long-term support needs, but which has no additional design features. It can be self-contained or shared housing as part of a scheme or dispersed individual properties. Schemes may include some communal facilities or shared space for activity or support. (designated accommodation with on-site support)

• purpose designed accommodation-based supported housing — purpose-designed or adapted housing packaged with support services for people with transitional support needs. Schemes may be self-contained or shared housing as part of a scheme or dispersed individual properties. Schemes would typically include some communal facilities such as a lounge, training or activity space, and may include a laundry or guest room. (purpose designed accommodation with on-site support)

• designated accommodation-based supported housing — housing packaged with support services which is designated for people with transitional support needs, but which has no additional design features. It can be self-contained or shared housing and part of a scheme or dispersed individual properties. Schemes may include some communal facilities or additional social spaces. (designated accommodation with on-site support)

2.3.5 The inclusion of accessible design features or the delivery of a support service does not necessarily result in the categorisation of housing as specialist or supported if the property is not purpose-designed or designated for a particular needs group. In the absence of these conditions housing should be categorised as general needs.

2.3.6 Homes England funded specialist and supported homes should appropriately meet locally identified need to fit with, and complement, existing services and supported housing locally as part of local strategies. When developing schemes which include a care or support element Homes England encourages engagement with relevant local health and adult social care commissioners and Integrated Care Boards (ICBs).

2.3.7 Guidance and advice on developing place-based plans for housing for older people, autistic adults and adults with a learning disability is provided by the Social Care Institute for Excellence (SCIE).

2.4 Disabled and vulnerable people client groups

2.4.1 For the SAHP, disabled and vulnerable people client groups are divided into 2 needs categories — ‘working age disabled people’ with long-term needs and ‘people with transitional support needs’. A list of the client groups supported within these and their definitions is provided here.

2.4.2 It is recognised that some people may fall into more than 1 client needs group. To ensure clarity in assessment and reporting, providers should select the client group which best meets the primary intended need or needs and focus of the accommodation.

a) Working age disabled people 

These are people with a physical or mental impairment with substantial or long-term support and, or, care needs (in line with the Equality Act 2010 definition) including the following.

i) People with an acquired brain Injury that occurs after birth due to various causes impacting cognitive, physical, and emotional function

ii) People with HIV or AIDS who need support to maintain their independence within the community.

iii) People with a learning disability and, or, autistic people who need support to maintain their level of independence. They may have challenging behaviour, deficits in social functioning and, or, adaptive behaviour or impairments affecting social interaction, communication and imagination.

iv) People with mental health problems with a diagnosed or undiagnosed mental health problem who need support to maintain independence. This could be 1 of the following:

• people with enduring but relatively low-level mental health problems that interfere with their ability to cope or function on a day-to-day basis
• people whose behaviour is a concern for their own safety or that of others
• people at risk of suicide or depression
• people who have been diagnosed as mentally ill and are having, or have had, specialist treatment

v) People with a physical or sensory disability such as mobility difficulties, sensory impairments, suffering loss or abnormality of an anatomical structure or function, or suffering from a debilitating or long-term illness, including young onset dementia who need support to maintain their level of independence. Schemes that will predominantly be for older people with dementia or other age-related disabilities should follow the housing for older people route.

b) People with transitional support needs

These are people in crisis or with temporary support needs, including the following.

i) Homeless families with support needs, including families with dependent children considered to be homeless who may or may not be owed a homeless duty, and who need support to maintain an independent and settled lifestyle.

ii) Military veterans with support needs who are at risk of homelessness. or who are having difficulties in sustaining their accommodation or living independently.

iii) Ex-offenders, prison leavers and people at risk of offending who are having difficulties in sustaining their accommodation, or who are living independently because of their offending behaviour.

iv) People with alcohol misuse issues who need support to maintain their independence as a result.

v) People with drug or other substance misuse issues who need support to maintain their independence as a result.

vi) Victims or survivors of domestic violence or abuse, and those who are at risk of experiencing it.  Such people may have left their home or are having difficulties in maintaining their home for their personal safety and security.

vii) Refugees – people who have been officially accepted as refugees, or who have been given indefinite or exceptional leave to remain. This excludes those seeking asylum.

viii) People with multiple complex needs who need support to maintain their independence.  This could, for example, include people with mental health, alcohol and, or, drug problems, ex-offenders, people at risk of offending, prison leavers, people at risk of domestic abuse, rough sleepers and single homeless people.

ix) Rough sleepers — defined as a person bedded down for the night on the street, or sleeping outside or in buildings or other places not designed for habitation.  It also includes someone at risk of rough sleeping.

x) Single homeless people with support needs who need support in order to maintain an independent and settled lifestyle. They are considered by the service provider to be homeless, who may or may not be owed a homeless duty.

xi)Teenage parents — young single parents (usually aged 19 years or younger) needing support and vulnerable young women in this age group who are pregnant.

xii) Young people at risk – young people aged 16 to 25 who are homeless or in insecure accommodation and who need support to be able to take care of themselves, or to protect themselves from harm or exploitation.

xiii) Young people leaving care — young people leaving local authority care who have been looked after for a continuous period of at least 13 weeks after the age of 14.

2.5 Additional information on specialist and supporting housing scheme requirements

This section sets out further information and clarification on the requirements for specialist and supported housing schemes funded by Homes England.

2.5.1 Care homes

Homes England cannot fund residential care homes for older, disabled or vulnerable people where the care and accommodation are part of a single agreement with the occupant. This includes rooms in care homes occupied by licence and where the individual does not have exclusive use of the accommodation or security of tenure afforded by their occupancy agreements.

2.5.2 Care or support provided by other agencies

The provision of care or support services to a resident such as domiciliary care is not in itself grounds for classifying the stock as supported housing or housing for older people. One of the definitions in section 2.3 of this chapter must be met.

2.5.3 Night shelters and emergency accommodation

Night shelters, temporary winter shelters and emergency accommodation which only provide accommodation overnight (or a very short-term resting place) and provide no written occupancy agreement are not considered to be affordable housing and are therefore not eligible for funding. If the scheme provides a home, a written occupancy agreement, and the resident has the right to exclusive day and night access to their accommodation then this may be considered more as a hostel rather than a night shelter. It might be considered as affordable housing and may therefore be eligible for funding, provided one of the above definitions is met.

2.6 Specialist housing design requirements

2.6.1 Specialist and supported homes for older, disabled and vulnerable people come in many different forms and sizes. Homes England grant funded homes should be of good quality, reflecting the best practice and good design principles which are relevant to the types of accommodation being provided and the people who will be residing within them.

2.6.2 Homes should comply with the broader Homes England design, quality and sustainability requirements for the SAHP, including Building Regulations Approved Documents - Parts F, L and M; Standard Building For A Healthy Life (BHLF); and meet Nationally Described Space Standards (NDSS)where relevant.

2.6.3 Scheme design for older, disabled and vulnerable people must show consideration of good practice and demonstrate how it scores against the Housing our Ageing Population Panel for Innovation (HAPPI) design principles. Scheme design should also consider the Technology for our Ageing Population Panel for Innovation (TAPPI) principles to ensure inclusion of appropriate inclusive technology to support people to live independently.

2.6.4 Homes for older people delivered through the SAHP must be self-contained individual dwellings with their own front door. The homes and overall properties they fall within must be accessible and designed to wheelchair user standards.

2.6.5 Homes for disabled and vulnerable people funded under the SAHP are also generally expected to be self-contained individual dwellings with their own front door. Schemes for working age disabled people and people with transitional support needs, who would more suitably be housed in a home with shared facilities, will be considered where it can be demonstrated that the design is appropriate to the type of homes being provided and the people residing within them.

2.6.6 Providers intending to bring forward schemes of this nature should include within their applications details of how the design of the shared accommodation will support the needs of residents and increase their independence and well-being. Schemes which include the involuntary sharing of bedrooms or sleeping spaces are not eligible for funding.

2.7 Previous affordable homes programme requirements 

2.7.1 Requirements for the specialist housing types supported under the AHP 2021 to 2026, SOAHP 2016 to 2021 and any other legacy affordable housing programmes are set out here.

2.8 Housing for older people

2.8.1 Funding is available to support the development of good quality housing for older people. Housing for older people scheme types can include, but are not limited to, the following - sheltered housing, extra care housing and retirement villages.  Such housing should appropriately meet locally identified need to fit with, and complement, existing services and supported housing locally.

2.8.2 Homes England has 4 standard definitions of housing for older people as here.

1. Housing for older people (all special design features)

This is remodelled or purpose-designed grouped housing that has all the basic facilities and all special design features intended to enable people to live there for their lifetimes. All the following requirements must be met:

i) Basic facilities:

• the scheme or main building must have the basic facilities of a laundry for residents and, or, washing machines in the living units or provision for washing machines to be installed
• the scheme must also have a communal lounge

ii) Special design features:

• the whole scheme including entrances and the buildings that comprise it must be designed to wheelchair user standards
• living units must have walk-in showers or bathrooms adapted for people with mobility problems or wheelchair users
• bathrooms in living units that are wheelchair standard must meet the criteria for adapted bathrooms
• living units must have kitchens that are designed to wheelchair standards
• the scheme must have a bathroom with provision for assisted bathing
• if there is more than one storey there must be a lift

2. Housing for older people (some special design features)

This is remodelled or purpose-designed grouped housing that has all the basic facilities and at least one or more of the special design features listed below. Residents must have access to support services to enable them to live there for their lifetimes. In addition, if there is more than 1 storey, then there must be a lift.

i) Basic facilities:

• the scheme or main building must have the basic facilities of a laundry for residents and, or, washing machines in the living units or provision for washing machines to be installed
• the scheme must have a communal lounge

ii) Special Design Features:

• living units have walk-in showers or bathrooms adapted for people with mobility problems or wheelchair users
• bathrooms in wheelchair standard living units meet the criteria for adapted bathrooms
• the living units, the entrance area into the building and communal areas are designed to wheelchair user standards

3. Designated supported housing for older people

Buildings with none of the special design facilities and features listed above, but which provide accommodation designated for older people requiring support. The support services may be provided by the landlord and / or another organisation or organisations.

4. Designated housing for older people with access to support as required

Buildings with none of the special design facilities and features listed above but which provide accommodation designated for older people, with a process to enable tenants to access support services provided by the landlord and, or, another organisation or organisations where required.

2.8.3 Properties should be described as housing for older people if they are intended for older people (regardless of the actual characteristics of each tenant) and they fall into one of the above categories. The distinctive design features listed for housing for older people (all special design features) and housing for older people (some special design features) should be over and above the accessible and adaptable home requirements for general needs properties. The age of tenants that are resident in the properties is not a defining feature.

2.8.4 Tenants in housing for older people (all special design features) or housing for older people (some special design features) should have access to support services as the need arises to enable them to live in the property for the rest of their lifetimes.

2.8.5 Access to support means that, as a minimum, there is a process in place to assist in accessing and, or, signposting tenants to the support services that they need. Except in the case of ‘designated supported housing for older people’, the delivery or level of support is not a defining feature.

2.9 Housing for disabled and vulnerable people

2.9.1 Funding is available to support the development of good quality housing provision for disabled and vulnerable people that can be either supported, or have access to support available, where it is needed.

2.9.2 The generic term ‘supported housing’ applies to purposely designed or designated supported housing. The delivery of a support service (for example, Supporting People) does not necessarily result in the categorisation of housing as supported if the property is not purposely designed or designated for a particular client group. In the absence of either of these 2 conditions, housing is categorised as general needs.

2.9.3 Homes England recognises that vulnerability covers a wide range and level of needs, and that not all vulnerable people need supported housing. However, some people may require on-going support and care in permanent supported housing accommodation, whilst others may need tailored support for a limited period to support them into more independent living and a settled lifestyle. This could include enabling access to education, training and employment as appropriate.

2.9.4 Homes England has 4 standard definitions of housing for disabled and vulnerable people as follows.

1. Purpose-designed supported housing for disabled and vulnerable people

Buildings that are purpose-designed or remodelled to enable residents to adjust to independent living or to enable them to live independently and which require specific design features. There must be support services provided by the landlord or another organisation. As a minimum, a building or scheme must have the following:

• facilities: the scheme or main building must have basic facilities of a laundry for residents or washing machines in living units provided by the landlord and must also have a communal lounge
• design features: the entrance area into the building, communal areas and some living units must be designed to wheelchair user standards

2. Purpose-designed housing for disabled and vulnerable people with access to support

Buildings that are purpose-designed or remodelled to enable residents to adjust to independent living or to enable them to live independently, and which require specific design features (as per definition 1 above), but without the requirement for support services to be provided on-site. Tenants must instead have access to support and for a process to be in place to assist in accessing and, or, signposting them to the support services that they need.

3. Designated supported housing for disabled and vulnerable people

Buildings with some, or no, special design facilities and features but which are designated for a specific client group with support services in place to enable them to adjust to independent living, or to enable them to live independently.

4. Designated housing for disabled and vulnerable people with access to support

Buildings with some, or no, special design facilities and features but which are designated for a specific client group with a process to enable tenants to access support services where they are needed to enable them to adjust to independent living, or to enable them to live independently.

2.9.5 Supported housing scheme types can include but are not limited to:

• sheltered housing
• shared supported houses
• domestic violence refuges
• drug or alcohol rehabilitation schemes
• hostels
• foyers

2.9.6 Homes England funding is only available for the provision of accommodation and cannot fund other services.

3. Rough Sleeping Accommodation Programme (RSAP)

Bidding for the RSAP is now closed. All RSAP capital funded delivery and revenue grant claims must be completed by 31 March 2026.

3.1 Context

3.1.1 This section sets out the requirements which must be followed in relation to schemes delivered under the RSAP. It should be read in conjunction with a provider’s Grant Agreement and the other relevant chapters of this Capital Funding Guide listed here. These will apply to RSAP schemes unless specified otherwise in this section.

• Programme Management
• Grant Recovery - Registered Provider
• Procurement and Scheme Issues
• Finance

3.1.2 These requirements are specific to schemes delivered through the Homes England administered element of this programme under section 19 of the Housing and Regeneration Act 2008.

3.2. General

3.2.1 The Next Steps Accommodation Programme (NSAP) was launched in July 2020 during the coronavirus (COVID-19) pandemic. This formed part of the government’s response to providing support to people who were sleeping rough or at risk of sleeping rough, and were provided with emergency accommodation. The capital element of the programme, which was administered by Homes England, was specifically known as the RSAP.

3.2.2 The first phase of the RSAP in 2020 to 2021 was accelerated to assist in the push to deliver long-term, move-on accommodation for vulnerable people living in emergency provision in response to the COVID-19 pandemic. A further programme was launched in March 2021 which made available further capital and revenue funding to deliver additional longer-term, move-on accommodation and support services for rough sleepers between 2021 and 2024. Information on this further programme can be found in the RSAP prospectus and guidance.

3.2.3 Funding is split into 2 elements as follows.

a) Capital grants to support the costs of delivering new move-on housing schemes for people who were sleeping rough, or at risk of sleeping rough

b) Revenue grants to support on-going tenancy support costs in homes that are delivered using capital grant from the RSAP.

3.3 Scheme eligibility

3.3.1 RSAP schemes may be either new build homes or the refurbishment of existing properties with the following delivery routes (as defined in the Procurement and Scheme issues chapter) eligible under this programme.

• Purchase and Repair
• Acquisition and Works
• Existing Satisfactory
• Off the Shelf
• Works Only
• Lease and Repair

3.3.2 Schemes requiring the refurbishment and repurposing of existing social housing stock may be funded by exception. This will be subject to an assessment of additionality undertaken by MHCLG, together with an assessment of the implications for any historical Homes England grant in the property.

3.4 Client group eligibility

3.4.1 Homes funded through the RSAP must only be made available to people who are, or have recent lived experience of, rough sleeping or who are at immediate risk of rough sleeping or homelessness.

3.5 Rents and Tenancy arrangements

3.5.1 Rent and Tenancy arrangements for RSAP schemes should follow the requirements set out in the Housing for Rent chapter of this guide. Tenancies should be for a maximum of 2 or 3 years.

3.5.2 Providers should review and ensure they comply with DLUHC’s (now MHCLG) guidance to local authorities and providers on letting accommodation funded through the RSAP.

RSAP Grant Agreement

3.6.1 All grant recipients wishing to deliver long term move-on homes through the RSAP are required to enter into a Grant Agreement with Homes England. The Grant Agreement is a standard form contract that will be applied by Homes England to all RSAP providers. There will be variations of the agreement to reflect the organisational type of the grant recipient – for example, Registered Provider, local authority or unregistered body – and / or to reflect specific, agreed consortium arrangements.

Please refer to Grant Agreement examples for the RSAP 2021 to 2024 for more information.

3.6.2 For any homes delivered through the first round of the programme (NSAP) then the provisions within the respective contract for this programme applied. Any grant recipients with an existing NSAP contract who wished to access funding through the RSAP (2021 to 2024) were required to enter into a new RSAP Grant Agreement for delivery of this.

3.7 Management of Indicative schemes

3.7.1 Providers of indicative schemes involving the purchase of existing properties should begin to identify properties for acquisition as soon as possible from the date they were informed of their allocation.

3.7.2 Once an appropriate property is found and an offer accepted, providers should complete the requisite valuations and surveys and progress to the exchange of contract and completion as quickly as possible, whilst ensuring they complete the relevant due diligence checks to an appropriate standard.

3.7.3 Providers should update Homes England regularly on the progress of the acquisition of properties under indicative allocations.

3.7.4 Providers should notify Homes England at the earliest possible opportunity if they have grounds to believe that they will be unable to deliver some or all units ahead of the milestone date stated in their Investment Management System (IMS) bid.

3.7.5 As per the Grant Agreement if a provider does not meet these expectations or has grounds to believe that they will not be able to deliver some, or all, of their schemes ahead of the milestone dates specified in their IMS bid, they may be asked to hand back some or all of their allocation. This will be to the extent that this is reasonable and will reflect the number of units that provider has been able to deliver.

3.8 Grant payment milestones

3.8.1 Capital

3.8.1.1 Providers must not claim a grant in advance of need and if they do not have a secure legal interest in the land / property. Please refer to the Finance chapter (section 3.1) and the Grant Agreement for more information about claiming grant and for a definition of what constitutes secure legal interest.

3.8.1.2 Capital grant payments may be claimed in 3 instalments via Homes England’s Investment Management System (IMS) as follows.

• 45% on acquisition (where applicable)
• 50% on start on site (95% cumulatively)
• 5% on practical completion.

3.8.1.3 Note that for schemes using the Off the Shelf and Existing Satisfactory delivery routes, grant will be paid in a single tranche of 100% at practical completion.

3.8.1.4 For more information and definitions of these milestones is please refer to the Programme Management chapter, section 4.

3.8.2 Revenue

3.8.2.1 Revenue grant payments may be claimed in quarterly instalments following completion of the linked capital scheme.

3.9 Grant recovery

3.9.1 Capital grant allocations made under the RSAP are subject to Homes England’s grant recovery rules. Detail of the requirements, including the relevant grant recovery events, is available in the Grant Recovery - Registered Provider chapter of this guide.

3.9.2 Capital grants received under the RSAP cannot be used or recycled for any purpose other than one or more of their eligible purposes, unless otherwise agreed by Homes England and MHCLG.

3.9.3 If a provider wishes to use any homes for anything other than accommodating the eligible client group or does not operate in accordance with the parameters set out in the RSAP prospectus, a replacement agreement will need to be agreed between the lead local authority, the grant recipient (where different), MHCLG and Homes England. Such an agreement will determine either the parameters for recycling capital grant into an alternative, equivalent property for move-on accommodation, or the repayment of the capital grant received. Where a provider intends to request such an agreement, it must be highlighted to Homes England and MHCLG at the earliest possible opportunity.

3.9.4 Under the Grant Agreement providers are obliged to inform Homes England if a grant recovery relevant event has occurred, as set out in the Grant Recovery Determination and Grant Recovery – Registered Provider chapter of this guide. Where a provider wishes to change use, recycle funding into a suitable equivalent property, or to defer or write off grant funding this request will be passed to MHCLG to determine. Once a decision has been reached MHCLG will inform Homes England who will then confirm this to the provider.

3.9.5 Providers may use grant generated through their Recycled Capital Grant Fund (RCGF) as a capital cost contribution towards a RSAP scheme. See the Grant Recovery – Registered Provider chapter for further details on the overall RCGF requirements and process.

3.9.6 As per paragraph 3.9.2 above, RSAP grants are ringfenced to the Agreed Purposes of that programme. Any grant from the RCGF that is used to contribute to an RSAP scheme will, from that point, be classified as RSAP grant.

3.9.7 Any future recycling of any RSAP grant (including any RCGF used) will be restricted to the RSAP Agreed Purposes, unless otherwise agreed by Homes England and MHCLG.

3.9.8 Details of any RCGF included in a RSAP scheme should be included by the provider in its annual RCGF return to Homes England.

3.10 Reporting and Audit

3.10.1 Capital grant funded accommodation will be subject to Homes England’s reporting and Compliance Audit requirements. Details of these requirements are set out in section 7 of the Programme Management chapter of this guide.

3.10.2 Providers in receipt of revenue funding for their RSAP accommodation must complete and submit a Statement of Grant Usage (SoGU) to Homes England within 60 business days of the end of each financial period in which the grant recipient requests payment of revenue funding.

3.10.3 Providers are required to report progress against approved capital and revenue schemes to Homes England on a regular (at least monthly) basis for the duration of the programme period, including progress against the delivery milestones agreed in relation to the approved scheme(s).

3.10.4 Homes England (and MHCLG) may on occasion require additional monitoring information outside of the regular reporting cycle to respond to bespoke commissions. Any such requests will be reasonable and in line with the terms of the Grant Agreement.

4. Single Homelessness Accommodation Programme (SHAP)

Bidding for the SHAP is now closed. All SHAP capital funded delivery must be completed by 31 March 2026 with all revenue grant claims made by 31 March 2028.

4.1 Context

4.1.1 This section sets out the requirements which must be followed in relation to schemes delivered under the SHAP. It should be read in conjunction with a provider’s Grant Agreement and the other relevant chapters of this guide, in particular those listed below. These will apply to RSAP schemes unless specified otherwise in this section.

• Programme Management
• Grant Recovery
• Procurement and Scheme Issues
• Finance

4.1.2 These requirements are specific to schemes delivered through the Homes England administered element of this programme under section 19 of the Housing and Regeneration Act 2008

4.2. General

4.2.1 In September 2022, the government published its Rough Sleeping Strategy with the aim to provide more effective support to prevent rough sleeping happening in the first place and, where it does, a tailored offer of support so that people can build an independent life off the streets. The SHAP was announced as part of this strategy with the aim to increase the supply of good quality, specialist supported accommodation and housing-led approaches. The SHAP prospectus and guidance was launched on 7th December 2022.

4.2.2 There are often multiple, complex and overlapping drivers behind rough sleeping. The SHAP aims to address these needs, in particular focusing on supporting the following groups.

• adults with a long history of rough sleeping or with complex needs
• young people (aged 18 to 25) experiencing, or at risk of, homelessness or rough sleeping

4.2.3 The SHAP provides an opportunity to obtain capital grant funding to develop longer-term accommodation for the above groups. A key element is to provide revenue funding support funding alongside the accommodation to help residents to sustain their tenancies. Funding is therefore split into 2 elements as follows.

• capital grants to support the costs of delivering longer-term accommodation
• revenue grants for up to 3 years to support any on-going tenancy support costs

4.2.4 Funding is targeted at the local authority areas in England where data suggests that there are high levels of need for accommodation and support for the SHAP target client groups. Full details can be found in the SHAP Prospectus.

4.3 Scheme eligibility

4.3.1 SHAP schemes may be either new build homes or the refurbishment of existing properties. The following delivery routes (as defined in the Procurement and Scheme issues chapter) are eligible under this programme.

Newbuild

• Acquisition and Works
• New Build Works Only
• Off the Shelf

Rehabilitation

• Acquisition and Works
• Existing Satisfactory
• Purchase and Repair
• Lease and Repair
• Works Only
• Re-improvements
• Conversions

4.3.2 Indicative schemes will only be allowed for the rehabilitation Acquisition and Works, Purchase and Repair and Lease and Repair delivery routes where this will bring existing properties back into use. Otherwise, SHAP funded homes should be for firm schemes on named sites. See section 4.8 for more detail on indicative schemes.

4.3.3 Schemes requiring the rehabilitation and repurposing of existing social housing stock may be funded by exception. This will be subject to an assessment of additionality undertaken by MHCLG, together with an assessment of the implications for any historical Homes England grant in the property.

4.4 Client group eligibility

4.4.1 SHAP funded homes should be made available to the following target client groups.

• rough sleepers
• single homeless people with support needs
• vulnerable young people (aged 18 to 25) experiencing, or at risk of, homelessness or rough sleeping

4.4.2 Individuals accommodated in SHAP homes should be nominated as part of an agreed nominations agreement with the relevant local authority.

4.5 Rents and Tenancy arrangements

4.5.1 Rent and tenancy arrangements for SHAP schemes should follow the requirements set out in the Housing for Rent chapter of this guide.

4.5.2 Rents for SHAP funded homes must be set at Affordable Rent or Social Rent levels in line with the Regulator of Social Housing’s (RSH) Rent Standard. SHAP homes should be made available on the most appropriate tenancy / terms of occupation for the scheme. This may include the use of licence arrangements where applicable. Providers should seek their own legal advice, where appropriate, regarding the applicability of the government’s policy statement and the RSH’s Rent Standard.

4.5.3 The length of tenancies should be appropriate to the type of development, and any conditions attached to tenancy agreements / terms of occupation should be designed to support the needs of the individual(s).

4.5.4 For clarity, the Right to Shared Ownership does not apply to properties developed under the SHAP as they fall under the exemption for specialist homes for older, disabled and vulnerable people.

4.6 Design and standards

4.6.1 The design of SHAP funded homes should ensure that the requirements of the Decent Homes Standard (and any subsequent updates or replacement to this) are met. Scheme design should also take account of the Nationally Described Space Standards (NDSS) where applicable.

4.6.2 Providers delivering SHAP homes which form part of a Higher Risk Building (as defined by section 31 of the Building Safety Act 2022 must register as a signatory to the Building a Safer Future Charter.

4.7 SHAP Grant Agreement

4.7.1 All grant recipients wishing to deliver homes through SHAP are required to enter into a Grant Agreement with Homes England. The Grant Agreement is a standard form contract that will be applied by Homes England to all SHAP providers. There will be variations of the agreement to reflect the organisational type of the grant recipient – for example, Registered Provider, local authority or unregistered body – and / or to reflect specific, agreed consortium arrangements.

4.7.2 Please refer to Grant Agreement examples for SHAP for more information.

4.8 Management of Indicative schemes

4.8.1 Providers of indicative schemes involving the purchase of existing properties should begin to identify properties for acquisition as soon as possible from the date they were informed of their allocation.

4.8.2 Once an appropriate property is found and an offer accepted, providers should complete the requisite valuations and surveys and progress to the exchange of contract and completion as quickly as possible, whilst ensuring they complete the relevant due diligence checks to an appropriate standard.

4.8.3 Providers should update Homes England regularly on the progress of the acquisition of properties under indicative allocations. Firm scheme details should be updated on to Homes England’s Investment Management System (IMS) for review and approval as soon as possible after a property has been identified.

4.8.4 Providers should notify Homes England immediately if they have grounds to believe that they will be unable to deliver some or all units ahead of the milestone date stated in their IMS bid.

4.8.5 As per the Grant Agreement, if a provider does not meet these expectations, or has grounds to believe that they will not be able to deliver some or all of their schemes ahead of the milestone dates specified in their IMS bid, they may be asked by Homes England to withdraw some, or all, of their allocation. This will be to the extent that this is reasonable, taking into account the likely availability of Homes England resources in relation to any delay in scheme delivery and the adequacy of the grant recipient’s performance to date in delivering their SHAP indicative scheme(s).

4.8.6 Providers are entitled to propose changes to any SHAP indicative scheme prior to the milestone dates specified (and approved) in IMS being reached. Any such requests should be submitted to Homes England in writing for consideration and updated in IMS. If a proposed scheme change is not accepted by Homes England, the provider must notify Homes England (within 20 days of the decision received) as to whether it wishes to proceed on the basis of the originally approved SHAP indicative scheme, or whether to withdraw it.

4.9 Grant payment milestones

4.9.1 Capital

4.9.1.1 Providers must not claim a grant in advance of need and where they do not have a secure legal interest in the land / property. Please refer to the Finance chapter (section 3) and the Grant Agreement for more information on the requirements relating to secure legal interest and for claiming grant on SHAP schemes.

4.9.1.2 Typically, capital grant payments may be claimed in up to 3 instalments through Homes England’s IMS as follows.

• 45% at acquisition (where applicable)
• 50% at start on site (or 95% cumulatively where no acquisition tranche is claimed)
• 5% at practical completion

4.9.1.3 Note that for schemes using the Off the Shelf and Existing Satisfactory delivery routes grant will be paid in a single 100% tranche at practical completion.

4.9.1.4 For more information and definitions of these milestones please refer to the Programme Management, section 4.

4.9.1.5 When submitting capital grant claims providers must ensure that they have completed all of the steps set out within these definitions, and to have obtained and saved on file all relevant certifications relating to the claims which may be requested for audit purposes at a later date.

4.9.1.6 All SHAP capital grant milestones must be achieved before 31 March 2026.  No payments will be made beyond this point unless prior consent is given by Homes England.

4.9.2 Revenue

4.9.2.1 Revenue grant payments for support costs may be claimed via IMS in quarterly instalments following completion of the linked SHAP capital scheme. Revenue grant will only be paid for a maximum 4-year period from practical completion of the funded capital unit(s) up to 31 March 2028. Providers should have a suitable plan in place to ensure SHAP schemes are embedded in local commissioning pathways and that they are sustainable beyond the revenue grant funding period.

4.9.2.2 Revenue grant claims must only be made for costs incurred by the grant recipient in the quarter in which they were incurred unless express authorisation is given by Homes England. Such costs should be either those paid out or contractually committed in that period. For SHAP revenue grant claims the latter means that the grant recipient is subject to a valid and legally binding obligation (via an effective contract) to make a payment in respect of eligible revenue expenditure. An example of this could be a contracted payment to a support worker who is employed by, or on behalf of, the grant recipient organisation.

4.9.2.3 For the first revenue grant claim following practical completion providers may include up to 2 clear calendar months’ revenue incurred prior to completion where a short lead-in period of support is necessary. Sums incurred prior to the completion date will be paid in arrears on the first relevant quarterly payment date following unit completion and are included within the 3-year total revenue funding period which normally commences from completion.

4.10 Grant recovery

4.10.1 Capital grant allocations made under the SHAP are subject to Homes England’s grant recovery rules. Detail of the requirements, including the relevant grant recovery events, is available in the Grant Recovery - Registered Provider chapter of this guide.

4.10.2 Providers are obliged to inform Homes England if a grant recovery relevant event has occurred as set out in the Grant Recovery Determination Grant Recovery – Registered Provider chapter of this guide. Notifications should be made in writing via the Homes England historical grant notification form and emailed to Grant_Notifications@homesengland.gov.uk.

4.10.3 Capital grants received under the SHAP cannot be used or recycled for any purpose other than the eligible purposes (the ‘Agreed Purposes’ as defined in the SHAP Grant Agreement), unless otherwise agreed by Homes England and MHCLG.

4.10.4 A provider must request prior approval from Homes England (including consultation with MHCLG) if they want to use SHAP funded units for an alternative purpose other than the following.

• the approved client group for the scheme as detailed in the approved bid in IMS
• accommodating the target client group (see section 4.4)
• in accordance with the parameters set out in the SHAP prospectus and Grant Agreement

4.10.5 If an alternative purpose is not agreed, the grant recipient will be required to repay the capital grant funding received unless expressly agreed otherwise by Homes England.  Where revenue funding is attached to the relevant capital scheme, the revenue grant profile and / or the next revenue quarterly payment may be adjusted accordingly by Homes England.

4.10.6 Where a relevant event for grant recovery occurs and the provider is entitled to recycle the relevant capital grant, then the permissible uses for such recycled grant are the Agreed Purposes (as defined in the SHAP Grant Agreement), unless otherwise agreed by Homes England and MHCLG.

4.10.7 Providers may use grant generated through the Recycled Capital Grant Fund (RCGF) as a capital cost contribution towards a SHAP scheme. See the Grant Recovery – Registered Provider chapter for further details on the overall RCGF requirements and process.

4.10.8 As per paragraph 4.10.3 above, SHAP grants are ringfenced to the Agreed Purposes of that programme. Any grant from the RCGF that contributes to a SHAP scheme will, from that point, be classified as SHAP grant.

4.10.9 Any future recycling of any SHAP grant (including any RCGF) will be restricted to the RSAP Agreed Purposes, unless otherwise agreed by Homes England and MHCLG.

4.10.10 Details of any RCGF included in a SHAP scheme should be included by the provider in its annual RCGF return to Homes England. 

4.10.11 If the Statement of Grant Usage Revenue (see section 4.12.2) identifies any overpayment or an incorrect claim of the revenue funding, then the revenue funding profile and / or the next revenue quarterly payment may be adjusted downwards by Homes England. If all revenue funding has been claimed the any overpayment or incorrectly claimed amounts will need to be repaid to Homes England by the grant recipient organisation.

4.11 Changes to approved schemes

4.11.1 Providers may propose changes to any SHAP capital or revenue scheme at any time prior to the capital scheme completion date, or the revenue programme end date. These changes could consist of one or more of the following.

• a reduction or increase or other change to the number of dwellings to be delivered
• a reduction or other adjustment to the allocated grant
• changes to forecast dates

4.11.2 Any such changes must be submitted via Homes England’s IMS, specifying the reasons for the proposed change and taking into account any grant payments already received for the SHAP scheme. Any agreement of changes requested to approved SHAP schemes will be subject to consideration by Homes England, in consultation with MHCLG.

4.12 Reporting and Audit

4.12.1 Capital grants

4.12.1.1 Completed SHAP capital schemes will be subject to an annual compliance procedure in the form of a Statement of Grant Usage Capital (SoGU Capital). This is to be provided for each financial year to ensure schemes have been delivered in compliance with requirements in the CFG and SHAP Grant Agreement. The SoGU Capital will include confirmation that capital grant has been applied to eligible development costs and has been classified properly in IMS. The SoGU Capital must be provided within 60 business days of the end of any financial year in which capital grant is claimed.

4.12.1.2 Within the SoGU Capital the grant recipient must confirm the following.

a) All capital firm schemes delivered in the past financial year were done in compliance with the requirements and conditions specified in this guide and within the SHAP Grant Agreement.

b) All capital firm schemes have a scheme file in place. This file  should include the relevant evidence in line with the requirements of this Section 4 relating to the SHAP to support the SoGU Capital process (or Compliance Audit process if so directed by Homes England).

c) All grant has been applied to the relevant Development Costs (as set out in Schedule 2 of the SHAP Grant Agreement) and has been classified as capital expenditure according to proper accounting practices.

4.12.1.3 The SoGU Capital must be signed by the grant recipient’s Finance Director, or a person occupying an equivalent post in the relevant organisation.

4.12.1.4 A standard SoGU Capital template is provided in Schedule 4 of the SHAP Grant Agreement.

4.12.1.5 Capital grant funded accommodation will also be subject to Homes England’s reporting and Compliance Audit requirements. Details of these requirements are set out in the Programme Management chapter, section 7. A sample of SHAP capital funded schemes will be selected for full Compliance Audit each financial year to be carried out by an independent auditor.  Where it is required, independent auditors should be directly appointed by the grant recipient provider at its own expense. Guidance for providers and independent auditors can be found at the following - Compliance Audit: guide for providers and independent auditors.

4.12.2 Revenue grants

4.12.2.1 Providers in receipt of revenue funding attached to SHAP accommodation must complete and submit a Statement of Grant Usage Revenue (SoGU Revenue) to Homes England within 60 business days of the end of each financial year in which the grant recipient organisation requests payment of Revenue Grant.

4.12.2.2 Within the SoGU Revenue the grant recipient must confirm the following.

a) The details and amount of revenue grant received and incurred / expended in the preceding financial year

b) What this expenditure has procured

c) The number of SHAP units included in claims for revenue grant in the preceding financial year which achieved practical completion

d) Confirmation that all revenue grant has been applied to revenue funding eligible expenditure as set out in the SHAP Grant Agreement and has been classified as revenue expenditure according to proper accounting practices

4.12.2.3 The SoGU Revenue must be signed by the grant recipient’s Finance Director, or a person occupying an equivalent post of the grant recipient organisation.

4.12.2.4 A standard SoGU Revenue template is provided in Schedule 3 of the SHAP Grant Agreement.

4.12.2.5 In order to provide additional assurance on the use of public funds, a sample of SHAP revenue grant recipients will be selected for more in-depth review and verification of the SoGU Revenue which must be carried out by an independent auditor.

4.12.2.6 The sample selection process for full Compliance Audit, and any further assurance for both capital and revenue grants, will be based on set criteria and be proportional to the type of provider and size of the allocation awarded.

4.12.2.7 Note that all providers in receipt of SHAP funding are required to attend compulsory training on compliant delivery and the SoGU Capital and Revenue processes. Details of the training will be communicated to providers following confirmation of the grant allocation.

4.12.3 Reporting

4.12.3.1 Providers are required to report progress against approved SHAP capital and revenue schemes to Homes England on a regular (at least monthly) basis for the duration of the programme period. This should include but is not limited to the following.

• updates on progress against the delivery milestones agreed in relation to the approved scheme(s)
• ensuring expenditure and delivery forecasts are regularly kept up to date in IMS
• flagging any risks to the delivery of the approved scheme(s) within the programme timeframe.

4.12.3.2 Homes England may on occasion require additional monitoring information outside of the regular reporting cycle. Any such requests will be reasonable and in line with the terms of the Grant Agreement.

5. Traveller Pitches

5.1 General

5.1.1 Funding is available through the SAHP 2026 to 2036 and the AHP 2021 to 2026 for the provision of accommodation suitable for members of the Traveller community. This section should be read in conjunction with the other chapters of this guide, which explain our funding requirements, in particular the following.

• Programme Management
• Grant Recovery
• Procurement and Scheme Issues
• Finance

5.1.2 The term ‘travellers’ has the following meaning as set out in the Planning policy for traveller sites (December 2024 update) and the National Planning Policy Framework. For the avoidance of doubt it includes Romany gypsies, Irish travellers, new age travellers and travelling show people. The word ‘traveller’ should be construed accordingly.

5.1.3 The priority for Homes England funding is on new, permanent supply secured on a freehold or long leasehold basis. Although we anticipate that such new supply will comprise permanent pitches we recognise that, in some areas, the needs of the local traveller communities might best be met through other forms of provision such as transit sites.

5.1.4 The term ‘transit site’ is defined as follows. A pitch on which a person is entitled to station a mobile home under the terms and agreement for a fixed period of up to 3 months. Transit sites are permanent sites used to provide temporary accommodation for their residents. Lengths of stay can vary but are usually set at between 28 days and 3 months. The requirements for transit sites reflect the fact that they are not intended for use as a permanent base for any individual household.

5.1.5 It is expected that any pitch provision funded by Homes England will meet the identified need of travellers for the local authority in question, and that all sites will have full and long-term planning permission, regardless of the length of stay.

5.1.6 Funding is not available to support the provision of temporary stopping places, which are defined in the government’s Traveller Site Fund 2022/23 prospectus.

5.1.7 Landlords of low cost rental accommodation are required to be registered as a Registered Provider with the Regulator of Social Housing (RSH), in accordance with Section 31 of the Housing and Regeneration Act 2008, as applicable.

5.1.8 For providers delivering only ‘standard’ traveller pitches (i.e., with an amenity building but without any built sleeping accommodation) the requirement to be registered with the RSH does not apply as this form of provision is not formally classed as accommodation.

5.2 Site requirements

5.2.1 We expect the location, design, and layout of traveller sites to take account of best practice either locally or nationally. This would include consulting with members of the traveller community and having appropriate management arrangements identified at an early stage in the design process.

5.2.2 Annex A pf the Traveller Site Fund 2022/23 prospectus provides information on site design standards. The prospectus recommends it should be read in conjunction with the ‘Places we’re proud of’ guidance produced by the National Housing Policy Advisory Panel on Gypsy and Traveller Accommodation, supported by the National Housing Federation and Chartered Institute of Housing. In addition, providers should follow any relevant legislative requirements, including the Mobile Homes Act 1983 later amended by the Mobile Homes Act 2013.

5.2.3 It should be noted that the ‘Traveller Site Fund’ is separate from the SAHP and AHP 2021 to 2026 with Homes England not involved in its delivery. As explained in the prospectus and accompanying frequently asked questions (see question 4) the Traveller Site Fund cannot be used as a match for any Homes England affordable homes programme funding.

5.2.4 It is recognised that the needs of the permanent pitch occupier and a transit or temporary pitch occupier are very different. Therefore, providers should consider whether a mix of permanent and transit on the same site is appropriate at an early stage in the design process.

5.2.5 Any pitch let under the Mobile Homes Act 1983 (as amended by the Mobile Homes Act 2013) is considered accommodation suitable for travellers.

5.2.6 For the purposes of Homes England’s affordable homes programmes the following standard definition of a pitch is used. A place for a family unit comprising at least an amenity building, access to utilities and hard standing area to accommodate at least one large trailer or caravan, parking for one vehicle and drying space for clothes. Each pitch should include an amenity building or suitable equivalent facilities, which may include (amongst others) the following.

• hot and cold-water supply
• electricity supply
• a separate toilet and hand wash basin
• a bath/shower room
• a kitchen and dining area

5.2.7 In addition, a site should offer access to other community facilities for residents, which may include (amongst others) the following.

• play space for children
• facilities for waste disposal
• wi-fi services for site residents
• storage and stabling / grazing for animals

5.2.8 Providers must not claim grant in advance of need and without having a secure legal interest in the land / property. Please refer to the Finance chapter (section 3) and the Grant Agreement (see below) for more information about secure legal interest and the claiming of grant.

5.3 AHP 2021 to 2026 Grant Agreement for Traveller Pitch funding

5.3.1 All grant recipients wishing to deliver accommodation suitable for members of traveller community are required to enter into a Grant Agreement with Homes England. The Grant Agreement is a standard form contract that will be applied by Homes England to all traveller pitch providers. There will be variations to reflect the specific type of grant recipient organisation – for example, Registered Provider or local authority.

6. Community-led housing

6.1 General

6.1.1 Funding is available through the Social and Affordable Homes Programme (SAHP) 2026 to 2036 and the Affordable Homes Programme (AHP) 2021 to 2026 to support the development of community-led housing. This section should be read in conjunction with the other relevant chapters of this Capital Funding Guide listed below which set out Homes England’s requirements in more detail.

• Programme Management
• Grant Recovery
• Procurement and Scheme Issues
• Finance

6.1.2 For the purposes of Homes England’s affordable homes programmes, community-led housing is defined as affordable housing delivered by, or on behalf of, local groups or communities.  It is primarily for the purpose of meeting the needs of its members or the wider local community, with the community having on-going ownership, management or stewardship of the development. This is in line with the National Planning Policy Framework definition of community-led development.

6.1.3 Community-led homes supported under the affordable homes programmes must be delivered through one of the eligible affordable housing tenures - Affordable Rent, Social Rent, Rent to Buy or Shared Ownership. Schemes should be developed in line with the requirements for the relevant tenure selected.

6.1.4 Landlords of low-cost rental accommodation funded by Homes England are required to be registered as a provider of social housing with the Regulator of Social Housing (RSH), in accordance with Section 31 of the Housing and Regeneration Act 2008.

6.1.5 Rent and Tenancy arrangements for schemes should follow the requirements set out in the Housing for Rent chapter and be in line with the relevant RSH Standards.

6.1.6 Schemes developed for affordable home ownership should follow the requirements set out in the Shared Ownership and Rent to Buy chapters. It should be noted that for Shared Ownership there must be no prioritisation or local connection criteria applied to applicants apart from the following priorities established by government.

• serving military personnel and former members of the British Armed Forces discharged in the last 2 years
• National Parks, Areas of Outstanding Natural Beauty and rural exception sites

6.1.7 Funding is not available through Homes England’s affordable homes programmes for the costs of establishing a community-led organisation, group capacity building or pre-development feasibility studies.

6.2 Community-led housing types

6.2.1 Homes England is not restrictive on the types of community-led housing that can be delivered, providing that the homes fit with itswider programme requirements.

6.2.2 Types of community-led housing which may be supported include, but are not limited to, the following.

• co-housing
• housing co-operatives
• housing delivered by a Community Land Trust (CLT)

6.2.3 To be considered as genuinely community-led it is expected that schemes will meet local need and be initiated by, and involve, the community throughout the development process. The community does not necessarily have to manage the process, or build the homes themselves, though some may choose to. 

6.2.4 The benefits to the local area and / or specified community must be clearly defined in the scheme and legally protected in perpetuity. 

6.2.5 The local community group or organisation should own, manage or steward the homes in a manner of their choosing. This may be done through a mutually supported arrangement with a Registered Provider that owns the freehold or leasehold for the property. 

6.2.6 Grant recipient organisations must not claim a grant in advance of need and if they do not have a secure legal interest in the land / property. Please refer to the Finance chapter (section 3.1) for more information about claiming grant and for a definition of what constitutes secure legal interest.

7. Rents and Tenancy arrangements

7.1 General

7.1.1 For more information on Social Rent and Affordable Rent schemes see the Housing for Rent chapter of this guide.

7.2 Specialist housing

7.2.1 Providers should set Affordable Rents and Social Rents in accordance with the requirements of the government’s Policy statement on rents for social housing and the Regulator of Social Housing’s (RSH) Rent Standard. The former of these provides a definition of the term ‘supported housing’.

7.2.2 Housing for vulnerable and older people often includes a range of services to support the particular needs of the client group. When setting an Affordable Rent level for housing for vulnerable and older people, refer to the Policy statement on rents for social housing.

7.2.3 SAHP and AHP 2021 to 2026 homes should be made available on the most appropriate tenancy / terms of occupation for the scheme and in accordance with the RSH’s Tenancy Standard. This may include use of licence arrangements where applicable. Providers should seek their own legal advice, where appropriate, regarding the application of the government’s Policy statement on rents for social housing and the RSH’s Rent Standard when they consider it necessary to do so.

7.2.4 Tenancy lengths should be appropriate to the type of development Any conditions attached to tenancy agreements, or to the terms of occupation, should be designed to support the needs of the individual(s) being housed and to enable them to live securely. It is expected that providers will offer the longest and most secure tenancy or occupation agreement for the client.  

8. Shared Ownership

8.1 General

8.1.1 Delivery of specialist Shared Ownership schemes under one of Homes England’s affordable homes programmes should follow the requirements set out in the Shared Ownership chapter of this guide.

8.1.2 This chapter provides general information on Shared Ownership as well as specific guidance on applicant eligibility, the assessment of affordability, lease requirements, rents to be charged, etc.

8.1.3 In additional to the general Shared Ownership product, there are 2 variants which may be used when delivering specialist homes. Older Persons Shared Ownership (OPSO) is restricted to applicants aged 55 or over and provides specifically designed accommodation for older people (including extra care accommodation), often with strong links to appropriate health and support services provided on-site or available off-site. Home Ownership for people with long-term disabilities (HOLD) is a specialist product allowing independent living often with required health and support services nearby as required, and often close to family support.

8.1.4 More information on these specialist products can be found within the Shared Ownership chapter - see sections 1.4.12 and 3.7.7 for OPSO and sections 1.4.1 and 3.7.2 for HOLD.